After September 11, 2001 - The Impact of Terrorism on Lower Manhattan Business Relocation Patterns

On September 11, 2001, business in Lower Manhattan changed in a way that no one ever expected. The attacks destroyed and damaged approximately 40 percent of Lower Manhattan's commercial space and immediately cost downtown the temporary loss of 114,000 jobs. The New York Metropolitan Transportation Council (NYMTC) reports that of the 1,134 businesses that were displaced, 823 firms left Lower Manhattan and resettled in 881 locations: more than 192 moved to Midtown Manhattan, 96 to Manhattan's Valley, and 21 elsewhere in Manhattan for a total of 309 Manhattan destinations above Lower Manhattan. In total, New York City retained some 811 firms with 81 percent of their employment (92,100 jobs). In addition to New York City, Jersey City and Hoboken, New Jersey's two prime waterfront cities, gained 103 firms from Lower Manhattan, while Long Island picked up 25 firms. While numerous research organizations have compiled and analyzed these statistics in greater detail, little is known about why individual businesses actually decided to relocate outside of Lower Manhattan. After holding interviews with some of the businesses that relocated and analyzing past information about particular business relocation decisions, this research paper intends to report and analyze the specific concerns and reasons businesses had for leaving Lower Manhattan.